KIS MILLENNIALS

Kairos presents KIS Millennials, a themed equity fund, denominated in dollars, which invests in mainly American companies dominating the lives of Millennials.

The consumption, habits and lifestyle of Millennials make them the real stakeholders of the world economy today. Globally, they are the generation with the greatest spending power. Kairos KIS Millennials invests in those companies, mainly American, able to anticipate their needs, and which, given the constant increase in their purchasing power, are today reaping the greatest benefits and will continue to do so in the years to come.

BUT WHO ARE THESE MILLENNIALS?

Also known as Generation Y or Digital Natives, Millennials were born between 1980 and 2000 and now amount to about 2.34 billion people, the largest generation on the planet. Growing up in an era marked by great technological progress and globalisation and with a higher income than previous generations, they have led to a transformation of business models and lifestyles, mainly in the United States and Emerging Countries, where the majority of them live. Considering also that Generation Z (1.25 billion), immediately after the Millennials, is continuing with the same preferences, the relative market trend involves about half the world's population.

INTERESTING FACTS, ETYMOLOGY AND MEANING

Millennial is an Anglo-Latinism formed from the Latin term millennium with the addition of the suffix -al, which is used in English to form adjectives. In 1991, the expression "millennial generation” was coined. According to industry literature and the Oxford English Dictionary, the first evidence of the term is attributable to American sociologists and historians William Strauss and Neil Howe, who first used these terms in their book Generations. The History of America's Future, 1584 to 2069, published in 1991 when the thus-named generation was still “budding”, since its members were under 10 years of age. The same authors later continued to monitor this generation, publishing a monograph entitled Millennials Rising in 2000. (Source: Accademia della Crusca)

GENERATIONS TO DATE

Statistics - Kairos
Globe - Kairos

WORLD POPULATION

UNITED STATES

Flag - Kairos
Globe - Kairos

UNITED STATES

Flag - Kairos
2000

Millennials' labour income in billions of dollars in the United States alone

1400

Millennials’ spending in billions of dollars in the United States alone

50%

The percentage of the American workforce in 2019 relative to Millennials + Generation Z

+6,3%

Annual rate of growth in Millennials' labour income in the United States alone

Source: Kairos elaboration on worldometers.info data, Bureau of Labor Statistics, Accenture. Figures in dollars as at the second quarter of 2019.

MILLENNIALS TREND

IMPACT ON THE MARKET

Their tendency to adopt clearly-defined behaviour patterns has triggered the sharing economy, a new ecosystem opportunity worth $450 billion in the United States alone.

A social evolution, an investment opportunity for those cutting-edge companies that are able to “ride” the trend and align their business models with the different spending habits, consumption priorities and behavioural models of this generation.

Social Share - Kairos

SOCIAL MEDIA AND
ENTERTAINMENT

They are digital, they consume videos, games and streaming media on a massive scale.

Clothing - Kairos

CLOTHING
They are well-informed consumers, able to make spending decisions in a more selective manner. They are focused on price and value for money and make more purchases online.

Food - Kairos

FOOD AND DINING OUT
They eat out of the house 30% more often than anyone else and regularly go to fast food restaurants. They love the authentic and artisanal, both food and spirits.

Transport - Kairos

TRANSPORT
AND SMART MOBILITY

They make extensive use of rental and sharing products and services.

Education - Kairos

EDUCATION
AND EMPLOYMENT

They are the most educated in history and make extensive use of online training platforms and professional networks.

Financial Services - Kairos

FINANCIAL SERVICES
AND INVESTMENTS

They mainly use digital banking and online investment services, mobile payments, P2P loans. They are highly focused on social and environmental impact when making investment decisions.

Home and household - Kairos

HOME AND HOUSEHOLD
GOODS

They mainly rent and make extensive use of e-commerce platforms for furniture and for finding accommodation.

Health and physical shape - Kairos

HEALTH AND PHYSICAL SHAPE
They have a strong focus on fitness, wearable technology, nutritional services.

KIS MILLENNIALS

WHAT IS IT?

Millennials, the themed equity fund from Kairos International Sicav, sets out to offer medium to long-term capital appreciation. KIS Millennials is a low correlation fund that invests at least 70% of its portfolio in listed companies in the United States, which are expected to benefit from the growing importance of the consumer preferences of the Millennials generation.

CREATION OF THE INVESTMENT PORTFOLIO

Starting from the MSCI USA* index, the fund’s benchmark, Kairos' internal search initially filters the basket by selecting only companies related to the Millennials theme. Through in-depth analysis, the Team then excludes companies that do not represent an economically sound investment and includes others, not in the index, that benefit from the theme, have valid fundamentals and attractive income prospects. In addition, it optimises sectoral composition, with the aim of making the investment sphere more uniform. The implementation of two strategies, to optimise the risk-return ratio and exploit volatility through the use of options, completes the Portfolio creation process.

WHO IS THE TARGET INVESTOR?

This product is suitable for any type of customer who wants to diversify the equity component of his or her portfolio with a product denominated in dollars and focused on the US market, in turn, diversified among various sectors. Since it refers to a number of mega trends, the millennials theme also allows the Fund managers, and therefore subscribers, to take advantage of multiple levers which, suitably implemented in the portfolio, should be able to diversify the risks — each mega trend in fact has its own specific cycle — safeguarding most of the yield potential.

MANAGEMENT TEAM

Pio Benetti - Kairos

PIO BENETTI

Portfolio Manager

Riccardo Baldissera - Kairos

RICCARDO BALDISSERA

Portfolio Manager

Pio Benetti and Riccardo Baldissera make up the Management Team, supported by a team of analysts with a high level of expertise in disruptive technologies, new digital frontiers and anticipation of new trends, a significant plus for this investment theme.

* Source: MSCI. MSCI makes no express or implied warranties or representations and assumes no responsibility for the MSCI data contained herein. MSCI data may not be further redistributed or used as a basis for other indices, securities or financial products. This document has not been approved, validated, reviewed or produced by MSCI. MSCI data is not intended to constitute investment advice or a recommendation to make (or refrain from making) any type of investment decision and should not be construed as such.

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